Does Elon Musk play 4D chess or is he just making rookie mistakes? It is easy to gauge the unfortunate and inaccurate news these tweets contained, but what if Elon just doesn’t know any better? What if the billionaire doesn’t have a master plan and instead learns right before our eyes? That is certainly a possibility. At least that’s what TV personality and Bitcoin proponent Max Keizer thinks:
We should remember that Elon is a #bitcoin noob who makes the same noob mistakes.
– 🍊💊 Max Keizer (@maxkeiser) May 26, 2021
Although Mr. Musk has been involved with cryptocurrencies for a long time, he has only been involved with cryptocurrencies for a few months. Fortunately, our sister site Bitcoin has been there from the start. Let’s examine Elon’s history with projects related to blockchain technology and try to figure out his master plan or lack thereof. It’s the least we can do.
Could Elon Musk be Satoshi Nakamoto?
Three years ago the billionaire had to react to the world:
“Huh. A friend sent me part of a BTC for a couple of years, but I don’t know where it is,” he wrote in response to a recent blog post author Sahil Gupta said Musk was “likely.” “Nakamoto. Satoshi could be a collaboration between Musk, Nick Szabo and Hal Finney. It is more likely, however, that Elon read their research, took inspiration from them, and built the product solo,” Gupta thought.
Although Musk had nothing to do with cryptocurrencies at the time, it was in the same orbit. And the crypto community tried to attract him with different tactics.
DOGE price chart on Bitfinex | Source: DOGE/USD on TradingView.com
The CEO of Dogecoin
Two years ago he was crowned CEO by the Dogecoin community. As you can imagine, the coin registered its first Elon pump:
The impact on Dogecoin was immediate and crucial: at the time of going to press, the altcoin had gained nearly 35 percent daily against the US dollar.
DOGE / USD is currently trading at $ 0.0033, its highest level since early November.
Elon Musk quickly caught the attention of the cryptocurrency community on Twitter, and traders extrapolated the potential support from the broader industry beyond DOGE.
And although Musk immediately stepped down to the position of Doge CEO, the billionaire’s relationship with the joke cryptocurrency would prove to be stronger than anyone would have thought.
Related reading | Goldman Sachs Exec says no too firmly after making millions on Dogecoin
Elon Musk’s First Views on Crypto
A year ago, the billionaire finally spoke publicly about cryptocurrencies in his own “Third Row Tesla Podcast”. Bitcoinist reported:
He likes the concept and thinks it’s “smart”. However, he also has concerns about their role in illegal transactions. He said,
There are transactions that are out of the law. And there are obviously many laws in different countries. Cash is typically used for these transactions. However, in order for illegal transactions to take place, cash must also be used for legal transactions. You need a bridge between illegal and legal. This is where crypto comes in.
Oh, the “criminals use bitcoin” argument. The first question every noob comes across. We hope that Elon has already found out that every transaction made remains engraved on the blockchain forever. And that fact isn’t ideal for criminals, as the DarkSide saga proves.
Tesla adds Bitcoin to its balance sheet
Bitcoin got the Elon pump just four months ago. His company was in the process of acquiring BTC and:
Elon Musk’s addition of “#Bitcoin” to his Twitter bio and potential buying activity undoubtedly played a large role in this rally.
The coin went from $ 32,000 to $ 38,000, and then it was only in use for a while. A few months later, Elon replied “true” to a tweet about Bitcoin and renewable energy. Bitcoinist reported:
An April tweet that proves Elon had thought about the subject. He also agreed with Jack Dorsey when he made the following statement: “Bitcoin incentivizes renewable energy.” Talk about a smoking weapon.
A few weeks later, Elon announced in an infamous tweet that Tesla was not accepting any more Bitcoin payments due to environmental concerns. And all hell broke loose.
BTC price chart on Gemini | Source: BTC/USD on TradingView.com
Maybe Elon Musk hasn’t done his homework?
It’s hard to believe that Tesla invested more than a billion dollars in Bitcoin without examining the ecological part of the equation. On the other hand, in defending his position, Elon made it clear that he does not know the difference between the knots and the miners:
Bitcoin is actually highly centralized, with the super-majority being controlled by a handful of large mining companies (also known as hashing).
A single coal mine in Xinjiang was flooded, nearly killing miners. The bitcoin hash rate dropped 35%. Sound “decentralized” for you? Https://t.co/Oom8yzGRNQ
– Elon Musk (@elonmusk) May 16, 2021
While the fact that most of the miners have been in China isn’t ideal, the nodes control the Bitcoin network. And these are distributed all over the world. Anyone can get up and running with a few simple steps, including you.
And then, just three weeks ago, he said the craziest thing about Dogecoin. Bitcoinist reported:
With his keen sense of humor, Musk finds it ironic that this emerging class with the potential to be the world’s reserve currency is at the forefront of a project that started out as a joke. Musk said:
Which one will it be? Perhaps it is multiple, it should be viewed as speculation at this point. The point is, Dogecoin was invented as a joke, essentially to make fun of cryptocurrencies. Fate loves irony, what would be the most ironic result? That the currency that was invented as a joke actually becomes real currency. To the moon!
That’s cute! Even so, Doge’s basic properties make it an impossible outcome. The supply is unlimited and the system mints an absurd amount of new coins every day. If the world wants a perpetual printing machine that devalues the holder’s coins by the minute, it already has the Fiat system.
And mind you, the ongoing pressure was the main part of the Doge joke. It appears that the punch line flew over Elon’s head.
Related reading | Binance Burns posted a BNB record of $ 600 million in the 15th quarter
So could Elon just be making noob mistakes?
When a big mind accompanied by a big ego encounters Bitcoin, it immediately tries to fix it. Elon is not the first and will not be the last. Every great bitcoin thinker out there has had an altcoin phase. They all thought that maybe a new idea had come up that would make Bitcoin obsolete.
After all, they all realize that Bitcoin is more of a miracle than a technology. That the economic incentives are exactly where they belong and that this is a machine that has the potential to make the world a better place for everyone.
Maybe Max Keizer is right and Musk isn’t there yet.
When that happens, we can probably rely on his genius to figure all of that out.
Let’s hope he does it sooner than later.
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